HiFX: Foreign Exchange Specialists

• Headlines

July 8, 2008

U.S. pending home sales fell by 4.7% in May, far more than analysts had expected.  This release possibly also signals more trouble ahead for the already defeated U.S. housing market.  The regional breakdown shows the steepest declines in the South band Midwest and the smallest decline in the West where the signs of sales moving up from lows are now quite convincing.  The West was the first and hardest hit region and appears to be the first to find a base.  The Northeast saw a 2nd straight fall but a modest pullback in comparison to a sharp rise in March and it looks like this region will remain resilient.  Despite the disappointing data the U.S. dollar was largely unchanged.